Back in October, the 27-year-old shared a video on his Instagram page of prominent Palestinian preacher Mahmoud al-Hasanat, who called on God to "send Jewish people a dark day".
Atal quickly deleted the video from his social media page and issued an apology, but he was nevertheless suspended by Nice with immediate effect and has not played for the Ligue 1 club since.
The mayor of Nice Christian Estrosi publicly stated that Atal should not be allowed to represent Les Aiglons again unless he condemned "Hamas terrorists", and the Nice Public Prosecutor subsequently launched an investigation.
Atal appeared in court in December to explain his actions, claiming that he believed the video to be a "message of peace" and admitting "regret" over failing to watch the entire piece of footage.
A report from Get French Football News stated that prosecutors were seeking a 10-month suspended term for Atal, but on Wednesday, the defender was instead been given an eight-month suspended sentence.
Atal was found guilty of 'provoking hatred on grounds of religion', and according to RMC Sport, the Algerian must also pay for the conviction to be published in Nice-Matin and Le Monde.
Alongside his club suspension by Nice, Atal was banned for seven matches by the Ligue de Football Professionnel (LFP), although he is widely expected to head for the Aiglons exit door during the January transfer window.
Prior to his suspension, Atal had scored one goal in six Ligue 1 games for Nice in the 2023-24 campaign, making his most recent appearance for the club in a goalless draw with Brest on October 1.
The 27-year-old has registered a total of 12 goals and eight assists in 115 outings for the French club since joining in the summer of 2018, and his contract is due to run out at the end of the season.
Despite the now-concluded investigation and his conviction, Atal has continued to be considered for selection by Algeria and was named in their squad for the upcoming Africa Cup of Nations, which sees the Fennec foxes take on Burkina Faso, Mauritania and Angola in Group D.
Nice entered the winter break sat second in the Ligue 1 table, five points behind reigning champions Paris Saint-Germain, and Francesco Farioli's side play their first game of 2024 on Saturday, when Auxerre visit the Allianz Riviera in the Coupe de France.